'Treasury Sec. Mnuchin Uses Debunked GOP Talking Pt. To Justify Cutting $600 Unemployment Boost
- 'Treasury Secy. Mnuchin Uses Debunked GOP Talking Pt. to Justify Slashing $600 Unemployment Boost'--"Inflicting suffering on 10s of millions by cutting unemployment benefits because of an anecdotal 'some cases' argument that's been refuted again & again is a stupid way to make policy." Jake Johnson, Common Dreams, 8/3/20. - Excerpts, Ed.:
- Treasury Secretary Steven Mnuchin & WH Chief of Staff Mark Meadows leave the U.S. Capitol after speaking to reporters on July 30, 2020 in Washington, D.C.
Trump's Millionaire Treasury Secretary Steve Mnuchin on Sunday recycled a debunked right-wing talking point to justify the GOP's proposal to cut by more than half the $600-per-week federal boost in unemployment benefits that expired at the end of last week, depriving around 30 million Americans of a key economic lifeline as joblessness remains at historic levels. In an appearance on ABC's "This Week," Mnuchin claimed, "there's no question" that the $600 weekly boost in unemployment insurance (UI) created a disincentive to work. (Video at Link). When host Martha Raddatz pointed to a recent Yale study that found "no evidence that more generous benefits disincentivized work," Mnuchin responded, "I went to Yale, I agree on certain things, I don't always agree."
Mnuchin cited a "Chicago study"—apparently referring to May research from the University of Chicago showing that under the $600-per-week boost, 68% of unemployed workers who were eligible for UI could have received benefits that exceeded their previous work income. That study, however, did not examine whether the benefits created a disincentive for the unemployed to seek work. "There are cases where people are overpaid," said Mnuchin, a former Goldman Sachs banker with a net worth around $400 million. *The $600 weekly payment amounts to around what a worker would earn working 40 hours per week at a $15-an-hour wage. The fact that some workers earned more under the enhanced unemployment benefits than they did from their jobs makes the case for raising wages, not cutting benefits, progressives have argued.
*Pelosi: "Millions of children are food insecure, millions of families are at risk of eviction, and for the 19th straight week, over one million Americans applied for unemployment insurance. All parties must understand the gravity of the situation in order to reach an agreement that protects Americans' lives, livelihoods, and the life of our democracy."
Senate Republicans have proposed cutting the $600 weekly boost to $200—a $1,600 monthly benefit cut for tens of millions of people. In response Rep. Don Beyer (D-Va.) tweeted that "inflicting suffering on tens of millions of Americans by cutting unemployment benefits because of an anecdotal 'some cases' argument that has been refuted again and again by studies of actual data is a stupid way to make policy." Sen. Bernie Sanders (I-Vt.) slammed Mnuchin for wanting to to "slash $600 a week in unemployment benefits for 30 million workers who lost jobs" while supporting "the continuation of a $500 billion slush fund for corporations." "The Trump administration loves socialism for the rich, unfettered capitalism for everyone else."—Sen. Bernie Sanders
The $600-per-week increase in unemployment benefits expired on Friday as Republican and Democratic negotiators failed to reach an agreement to extend the payments—even amid dire warnings that a lapse could lead to a surge in evictions, increased hunger, and massive job loss. Mnuchin on Sunday touted the WH offer of a one-week extension of the $600 payments, but Democratic congressional leaders and other critics dismissed the proposal as a "sham" given that it would likely take weeks for states to distribute the payments. "They proposed it after it was too late to prevent a benefits lapse...
More, https://www.commondreams.org/news/2020/08/03/trumps-millionaire-treasury-secretary-uses-debunked-gop-talking-point-justify
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